International Context of Tax Policy

This factsheet examines the international context of tax policy and its implications for African countries within the evolving global tax governance framework. National tax systems are increasingly shaped by international rules that determine taxing rights and revenue allocation, often disadvantaging developing economies. The document traces the historical foundations of global tax rule-making from the League of Nations to the OECD’s dominance, highlighting the exclusion of African voices during critical formative stages. It reviews key institutions the Global Forum, the UN Tax Committee, and the Inclusive Framework on Base Erosion and Profit Shifting assessing their roles, limitations, and impact on African participation. Despite African countries’ membership in these initiatives, structural inequities persist, with transparency standards, profit allocation rules, and decision-making processes skewed toward high-income nations. The factsheet underscores the urgent need for reforms that ensure inclusivity, equitable representation, and binding commitments, positioning a UN-led convention as a more legitimate and responsive platform for advancing tax justice and safeguarding the fiscal sovereignty of developing countries.